CNBC so helpfully tells us that, now that the election is behind us, the light in our economic tunnel could be a “freight train.” Gee, it sure would have been nice to know that before the election, wouldn’t it?

Slowing corporate profits, the remnants of Superstorm Sandy and the ramifications of the “fiscal cliff” in Washington are expected to result in at least two quarters of slow or no growth that could make investing even trickier than it was during the ups and downs of 2012.

But that isn’t all. The bigger problem we are now told, is that the economy never achieved “escape velocity” in order to get past the low growth rate we have been experiencing.

The economy, CNBC says, never got to the point where we’ve had enough growth to withstand the sort of shocks that a Hurricane Sandy or a continued or renewed bad business climate would wreck upon it.

Obama didn’t fix a thing, it turns out.

All this means that the fiscal cliff won’t be easily weathered in an economy as delicate as the one in which we are mired.

So, what could be a solution? CNBC says get ready for higher taxes. But this “solution” is already spooking investors and businessmen. All expansion will likely cease immediately as the business sector sits idle waiting to see what Washington will do to “fix” all this.

In short, the business and investing sector is mighty afraid of an Obama second term. This means any tiny bit of growth we’ve been seeing lately might quickly stop.

I don’t recall reading or hearing anything this year about a weak economy.

Hell, the economy has been so good that we’ve been able to deal with other more important issues like the war-on-women, racism, Big bird and binders. CNBC is full of it. The economy is just fine.

stan25

That was the comment “The private sector is doing fine” To Obama and his cronies, big government is the economy

herddog505

They aren’t alone in this. ObamaCare was passed (if you can call the underhanded process employed “passing” a law) on the idea that – somehow – it would save money. Well, WHO does it save money? Turns out that, ultimately, it’s supposed to save the federal government money.

Now, we’re approaching ANOTHER fiscal cliff, and we’re worried about where “we” are going to get the money. Again, “we” is… the federal government, the (apparent) source of all jobs, health care, food, water, and everything good in the country.

914

Now they tell us what ‘WE’ already knew. Obama voters are truly devoid of seeing reality. Or are sure the unicorned one will bail them out with freeloader vouchers.

http://wizbangblog.com/ Adjoran

“a continued or renewed bad business climate”?

We call that “the Obama Administration.” Hello? CNBC? Anybody in there? I remember back in the day when you were a business and financial channel.

I say Republicans should publicly disavow the tax hikes, but since Obama refuses to compromise, give it to him WITH THE PUBLIC CONDITION that he acknowledge in a national address BEFORE we pass it that he owns the economy after this. We have washed our hands and the Democrats are the responsible parties, PERIOD.

GarandFan

Was looking at the business page in the local rag this morning. Several companies listed that were laying off workers next year. Anywhere from 500 to 1,500. One reason, rising costs on health care due to increases in the amount of “free” services to be rendered by the insurance companies. Seems “free” isn’t exactly “free”. One coal company just notified 200 workers that they are closing immediately. Reason, cheaper natural gas, increased EPA requirements are cutting the number of purchasers of their product.

Sure glad the recession is over. As for Sandy – when will Tingles Matthews start telling us “look at all the jobs Sandy has created!”

CNBC Text: “All the problems investors face—from a fiscal meltdown to the various economic woes around the world—add up to one daunting prospect: Another possible recession just over the horizon.”

Quote from article: “This week’s market drop “does reflect real worry about the fiscal cliff” but “we view this as anxiety as an opportunity to buy, not sell,” said Bernard Baumohl, chief global economist at the Economic Outlook Group.

“Both the real economy and the stock market will be comforted by a continuation of current monetary policy as well as credible signs in the days ahead that the White House and Congress are making progress to avoid a fiscal cliff dive,” he added.

Apparently Chicken Little lives inside Todd’s head. The fact that Todd let’s his chicken out every once in a while to run around the Wizbang barnyard show is nothing short of amusing.

And now the loyal Wizbangers can say they read that we’re definitely headed for a recession… and the other Wizbangers will nod their heads in unison.

Oysteria

Just as gracious in victory as you were in defeat, heh?

retired.military

“Both the real economy and the stock market will be comforted by a continuation of current monetary policy”

Carl, that is exactly what most of us are afraid of. Sooner or later the bill is going to come due. Generally when you procrastinate the bill gets bigger and bigger.

As I stated i an another thread look at the math.

Our current debt is $16 T. At 2% interest the interest payments are about $360B a year. Not good but manageable.

When you print more and more money one of 2 things have to happen. A. Devalue your currency or b. inflation kicks in.

You devalue your currency you cant buy as much from foreign countries and prices rise.

Inflation means that your money wont buy as much as before. There are some subtle differences as I undertand it but they have about the same effect.

Back under Carter we had 20% interest rates. Now apply that to our national debt and interest payments.

Say it takes 3 years to get to $20T national debt (which is reasonable consideriing the course we are heading on). and then pop up the interest rate to 20%. Interest on the debt isnt $360B a year anymore. It is $4T a year now. That is $4T in interest payments alone. This year we have a $1.2 T deficit and the entire “budget” is about $3.5T.

That is an additonal $3.6 T onto the debt if nothing else changes. Who will buy our debt? The system crashes and as the US goes the rest of the world goes.

Commander_Chico

I agree – can’t keep printing money and spending like this forever.

914

“CNBC: We’re Probably Headed to Another Recession… NOW They Tell Us?”

When did the first 2 end CNBC? Are they bookend’s for the modern day Depression?

Barry’s breaking all the records isn’t he CNBC? Ass clowns one and all.

But don’t tell the electorate so they can make an informed decision. Reelect the damned fool so he can make it worse.

ackwired

When you go deeply in debt, you have to pay it off and sacrifice new acquisitions, possibly cut your lifestyle, and possibly get a second job. Or you can file for bankruptcy. Since the 1980’s we have been demanding that the government wage war and provide social services and not tax us to pay for them. We demanded that they borrow the money instead. We are now deeply in debt. When we cut our lifestyle back it is called a recession. The alternative is for the government to default on it’s debt, which would have a worse effect on our lifestyle than a recession. It is time to grow up and accept our responsibility.

jim_m

When we cut our lifestyle back it is called a recession.

Wrong. When we cut our lifestyle back it is called austerity. When the economy cuts our lifestyle back THAT is a recession. It isn’t our lifestyle that needs cutting back. It is Washington DC’s.

And why since the 80’s have we been demanding the government to wage war? Have you forgotten that in the 70’s we were in Cambodia and Vietnam and provided logistics in Zaire? In the 60’s we were in Cambodia, Thailand, Laos, Zaire, The Domincan Republic, Vietnam. In the 50’s we were in Egypt, Lebanon,The Caribbean 9due to the Cuban revolution), Korean and Taiwan,

You might be comfortable in your revisionist history that war mongering started with Reagan (which is the obvious implication of war mongering starting in the 80’s) but the rest of us have somewhat more of a historical perspective.

ackwired

When you go deeply in debt, you have to pay it off and sacrifice new acquisitions, possibly cut your lifestyle, and possibly get a second job. Or you can file for bankruptcy. Since the 1980’s we have been demanding that the government wage war and provide social services and not tax us to pay for them. We demanded that they borrow the money instead. We are now deeply in debt. When we cut our lifestyle back it is called a recession. The alternative is for the government to default on it’s debt, which would have a worse effect on our lifestyle than a recession. It is time to grow up and accept our responsibility.

herddog505

WTH – Good thing Obama got re-elected, isn’t it?

Obama? What has he got to do with it? Don’t you know that any and all economic trouble is the fault of Bush and the Republicans who control the Congress? Oh, and talk radio?

/sarc

We shall see whether Barry can continue to duck responsibility for the economy in his second term. My guess is that he will; MiniTru has done a great job covering for him so far, and obviously people have been fooled. I’ve seen some polls that indicate that, after four f*cking years, a majority of people STILL blame Bush. Unbelievable. The man ought to change his name to George Walker Emmanuel Goldstein.